HOME
- Breaking
- Photos
- Video
- Crime
- Obituaries
- Weather
- Traffic
- Crosswords
- Sudoku
- Horoscopes
- Apps
Local
- L.A. Now
- Politics
- Crime
- Education
- O.C.
- Westside
- Neighborhoods
- Environment
- Obituaries
- Data & Maps
U.S.
- Politics
- Nation Now
- Politics Now
- Top of the Ticket
- Science
- Science Now
- Obituaries
- Religion
World
- World Now
- Afghanistan war
- Africa
- Americas
- Asia
- Europe
- Middle East
Business
- Money & Co.
- Technology
- Highway 1
- Company Town
- Personal Finance
- Jobs
- Real Estate
- Cars
Sports
- Sports now
- Lakers
- Clippers
- Dodgers
- Angels
- NFL
- Kings
- NHL/Ducks
- USC
- UCLA
- Preps
- Scores
Entertainment
- Awards: The Envelope
- Movies
- TV
- Music
- Celebrity
- Arts & Culture
- Industry
- Critics' Picks
- Comics
Health
- Science Now
- Medicine
- Fitness & Nutrition
- Mental Health
- Health Reform
- Mind & Body
Living
- Home
- Food
- Image
- Books
- L.A. Affairs
- Comics
- Reader Photos
Travel
- SoCal
- California
- Mexico
- Hawaii
- Las Vegas
- Europe
- Asia
- Australia
- Travel & Deal Blog
Opinion
- Editorials
- Op-Ed
- Letters
- Opinion L.A.
- Readers' Rep
Shop
- Daily Deals
- Travel Offers
- Coupons
- Weekly Circulars
- Offers & Deals
- Sports Gear
- LA Times Product
- See More
Membership Services
Jobs
Cars
Real Estate
Subscribe
Rentals
Weekly Circulars
Custom Publishing
Place Ad

Villalobos, Buenrostro targets of CalPERS fraud enforcement action

April 23, 2012|By Marc Lifsher

Former CalPERS board member Alfred J.R. Villalobos outside court hearing… (Allen J. Schaben / Los Angeles…)

SACRAMENTO — Federal securities regulators sued a former chief executive and a former director of the country's largest public pension fund, accusing them of scheming to defraud an investment firm of more than $20 million in fees.

The Securities and Exchange Commission filed the lawsuit Monday against the former CEO, Federico Buenrostro Jr., and the former CalPERS board member, Alfred J.R. Villalobos, alleging that they fabricated documents provided to Apollo Global Management in New York.

The documents were the basis used by Villalobos and his companies, ARVCO Capital Research and ARVCO Financial Venturues of Zephyr Cove, Nev., to bill Apollo for placement fees.

Villalobos was paid the fees for helping Apollo win multibillion-dollar contracts to invest money on behalf of the California Public Employees' Retirement System.

The alleged phony documents were patched together to comply with requests from Apollo lawyers that Villalobos provide them with proof that the fees had been approved by CalPERS investment staff.

"Buenrostro and Villalobos not only tricked Apollo into paying more than $20 million in placement agent fees it would not otherwise have paid, but also undermined procedures designed to ensure that investors like CalPERS have full disclosure of such fees," said John M. McCoy III, associate regional director of the SEC's Los Angeles office.

The complaint seeks restitution from Villalobos and Buenrostro as well as financial penalties.

The two defendants also are the target of a civil fraud suit brought by the California attorney general in Los Angeles Superior Court.

A federal criminal investigation also is pending.

CalPERS documents show more fees paid to Villalobos

Ruling clears way for fraud suita against former CalPERS official

FEATURED